# A developed country has a saving rate of 28 percent and a population growth rate of 1 percent per year. Share in output is constant, and that the…

B. A developed country has a saving rate of 28 percent and a population growth rate of 1 percent per year. Share in output is constant, and that the United States has been in a steady state. (For a discussion of the CobbDouglas production function, see the appendix to Chapter 3.) A. What must the saving rate be in the initial steady state? [Hint: Use the steady-state relationship, sy = ( + n + g)k.] B. What is the marginal product of capital in the initial steady state? C. Suppose that public policy raises the saving rate so that the economy reaches the Golden Rule level of capital. What will the marginal product of capital be at the Golden Rule steady state? Compare the marginal product at the Golden Rule steady state to the marginal product in the initial steady state. Explain. D. What will the capitaloutput ratio be at the Golden Rule steady state? (Hint: For the Cobb Douglas production function, the capital output ratio is related to the marginal product of capital.) E.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.